Electronic Arts Joins Layoff Club; Provides Sad Outlook

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Electronic Arts Joins Layoff Club; Provides Sad Outlook

Electronic Arts is cautious on its short-term business prospects and plans to let go of 6 percent of its workforce as a result of dismal economic and retail outlook –and despite a 40 percent increase in second-quarter sales.

The company lost $310 million, or 97 cents per share, in the second quarter, which widened from $195 million, or 62 cents per share last year.

"Considering the slow down at retail we’ve seen in October, we are cautious in the short term," said John Riccitiello, Chief Executive Officer, in a prepared statement. "Longer term, we are very bullish on the game sector overall and on EA in particular."

The layoffs are expected to save the company $50 million annually, but will result in $37 million in restructuring charges in 2009.